Grid upgrades are not only delivering the biggest recent transformation in its history, but also generating tens of thousands of jobs, according to analysis of the Electricity Networks Sector Growth Plan.
The assessment reveals how apprenticeships, engineering roles and senior posts are being created around the country, alongside £58bn in GVA (gross value added) for the UK economy.
In the first full report of the Plan, created jointly by Energy Networks Association (ENA) and BEAMA, network operators and their supply chain companies are set to invest up to £200bn over the next ten years, with spending directed to UK supply chain companies, regional projects and via local recruitment.
Regional breakdowns show almost £10bn GVA and 22,500 jobs in the north of Scotland, as well as £4bn GVA and 16,000 jobs in the south-west of England. It also sets out how 72p of every £1 invested will directly benefit regions and local communities.
In total, as many as 48,000 high quality, well-paid jobs are being created across the sector and its supply chain, in a wider total workforce of 210,000 by 2035.
More widely the Plan, produced with input from the UK Government, Scottish Government, Welsh Government, Ofgem, employers and trade unions, also sets out practical measures to strengthen Britain’s industrial capabilities by providing greater transparency around planned upgrades for manufacturers and SMEs.
These include enhanced supply chain visibility so manufacturers and SMEs can plan multi-year capacity, a shared Local Content methodology to enable quantification of UK economic benefits and a shift towards facilitating long-term procurement and collaboration. Combined, these measures will give businesses the confidence to invest, expand and create jobs across the country.
To support the implementation of the Plan, a newly established Growth Partnership, supported by ENA and BEAMA, has been established.
Overseen by an independent Chair, the Partnership will include dedicated sub-groups driving the delivery of cross sector action plans, focused on supply chains and skills development, in order to make the Plan a reality.
Lawrence Slade, Chief Executive, ENA, said:
“Network Operators are working hard to deliver a once in a generation transformation of the grid to enable the connection of more clean, secure and affordable energy, powering new industries and unlocking new development across the UK. “Our Sector Growth Plan describes how this transformation will bring direct, tangible benefits that will transform lives in communities around the country – including supporting 210,000 high-quality, well-paid jobs across network operation, manufacturing, engineering, construction and the wider supply chain.”
Yselkla Farmer, Chief Executive, BEAMA, added:
“Upgrading Britain’s grid is one of the biggest infrastructure programmes of our time. The Sector Growth Plan sets out how we will deliver it, giving manufacturers and service providers confidence to invest in people and places. The removal of uncertainties isn’t just helpful to the industry. It’s helpful for UK growth. After all, every new pylon and substation built over the next decade is a potential order for a factory, and jobs in local communities which will give us the electricity we need to power our industries and economy.”
Cordi O’Hara, Co-Chair of the Electricity Networks Sector Growth Plan and President, National Grid UK, added:
“We’re upgrading the grid to strengthen energy security and connect homegrown energy to power homes and businesses, but it’s also a once in a generation opportunity to drive growth across the country, strengthening UK manufacturing and supply chains, attracting investment and creating good jobs. Capturing that opportunity will take all of us. Long-term visibility, early commitment and genuine partnership can give businesses the confidence to invest and grow. This plan is about coming together as an industry to make sure the investment in our networks delivers lasting economic value for every corner of Britain.”
Phil Dingle, Co-Chair of the Electricity Networks Sector Growth Plan and Director, Future Networks, Lucy Electric, added:
“The UK needs to be where manufacturers choose to build their next factory. Production worldwide is stretched to meet demand for grid equipment, and the technologies we have pioneered here give us a strong platform for growth. The UK supply chain is already creating jobs and investing in new manufacturing facilities. But companies need clear sight of future demand before they commit. The Sector Growth plan has identified actions, which will be delivered through the Growth Partnership, creating the foundations for investment in capacity and skills.”
Akshay Kaul, Director General for Infrastructure at Ofgem said:
“Ofgem welcomes the Sector Growth Plan and the collaborative effort behind it. The focus now must be on turning that ambition into delivery. With government, industry and the regulator working together, there is a real opportunity to maximise the benefits of investment in Britain’s electricity networks. Ofgem will play its part in helping ensure that investment delivers lasting value for consumers while supporting jobs and economic growth across the country.”
Image of report courtesy of ENA/BEAMA
